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High wheat prices are here to stay: understand the consequences

The prices of the mill's raw materials, not only for wheat, but for all other inputs, have risen a lot this year and these increases seem to have come to stay. This is what the team of analysts at TF Agroecômica points out, which also projects inflation in the prices of flour, “under penalty of breakage”.

"At least as far as wheat is concerned, the outlook is for firm prices for the entire business year, so that buyers can give up the discourse that 'prices will fall in the harvest'," explain the experts. This is because the opposite is happening, they have already exceeded the prices of the old harvest both in Rio Grande do Sul and in Paraná, and have a great chance of continuing to rise as soon as the national wheat runs out, and the mills start to supply themselves with imported wheat, whose prices are above R $ 1,700.00 / ton CIF.

Continues after the form

“So, we say again that, even if your average wheat purchase price is lower, administrative prudence requires that your calculations to establish the price of flour are made by replacement costs and not by the previous acquisition price. And these are considerably higher and tend to rise from now on, even though, in the short term, there may be a period in which prices stabilize ”, recommend analysts.

“We believe that stocks in the national harvest, with rare exceptions, should not exceed February, at the beginning of March at the latest, after which, prices will be governed by the average of imported prices, which are already above R $ 1,700, 00 / ton CIF ”, concludes TF.

Source: Agrolink